Influencer Contracts: Stay Legal, Stay Cool

Influencer marketing has emerged as a powerful strategy for brands to connect with their target audience authentically.

As this practice sustains momentum, the importance of clear and comprehensive influencer contracts cannot be understated.

In this article, we will talk through the legal parameters and Federal Trade Commission (FTC) guidelines surrounding influencer partnerships.

Additionally, we will provide sample influencer marketing agreements to help brands establish successful and legally sound collaborations with influencers.

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Legal Parameters for Influencer Partnerships

Here are the basic legal parameters you need to understand to hire influencers for your social media accounts.

Disclosure Requirements

As per FTC guidelines, influencers must disclose their partnership with a brand clearly and conspicuously in their content.

Intellectual Property Rights

Determine how the brand and influencer will handle copyrights, usage rights, and licensing of the content created during the partnership.

Compensation Terms

Clearly outline the payment structure, including fees, commissions, royalties, or free products/services provided to the influencer.

Content Guidelines

Specify the type of content, quality standards, and brand messaging requirements to ensure brand consistency.

FTC Compliance

Ensure that the influencer contract explicitly requires adherence to FTC guidelines on disclosure and transparency.

Now, let's look at three examples of influencer marketing agreements/influencer contracts.

Sample Influencer Marketing Agreement 1: Pay-per-Post Model

This Influencer Marketing Agreement (the "Agreement") is made and entered into as of [Date] (the "Effective Date"), by and between [Brand Name], a [Jurisdiction] company (the "Brand"), and [Influencer Name], an individual residing at [Influencer Address] (the "Influencer").

1. Compensation and Deliverables: a. The Influencer agrees to create [Number of Posts] sponsored posts for the Brand on [Social Media Platform(s)]. b. The Brand shall pay the Influencer [Compensation Amount] for each sponsored post within [Payment Terms].

2. Content Guidelines: a. The Influencer shall create high-quality and original content that adheres to the Brand's values and aesthetics. b. The content must align with the following guidelines: [Content Guidelines].

3. Disclosure Requirements: a. The Influencer shall comply with FTC guidelines and disclose the Brand partnership clearly and conspicuously in each sponsored post using #ad or #sponsored.

4. Intellectual Property Rights: a. The Brand shall own all intellectual property rights in the content created by the Influencer during the partnership. b. The Influencer grants the Brand a non-exclusive, worldwide, royalty-free license to use, reproduce, and distribute the content for promotional purposes.

5. Exclusivity: a. The Influencer agrees not to promote or endorse any competitor of the Brand during the term of this Agreement.

6. Termination: a. Either party may terminate this Agreement with [Termination Notice Period] written notice. b. In the event of termination, the Brand shall compensate the Influencer for completed and approved sponsored posts.

7. Governing Law: a. This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].

[Brand Name] [Influencer Name] By: ________________________ By: ________________________ [Authorized Representative] [Influencer Signature] Title: _________________________ Date: _______________________

Sample Influencer Marketing Agreement 2: Affiliate Marketing Model

This Influencer Marketing Agreement (the "Agreement") is made and entered into as of [Date] (the "Effective Date"), by and between [Brand Name], a [Jurisdiction] company (the "Brand"), and [Influencer Name], an individual residing at [Influencer Address] (the "Influencer").

1. Compensation and Deliverables: a. The Influencer agrees to promote the Brand's products/services using unique affiliate links or codes. b. The Influencer shall receive [Commission Percentage]% commission on all sales generated through their unique affiliate link/code within [Payment Terms].

2. Content Guidelines: a. The Influencer shall create content that promotes the Brand's products/services in a genuine and engaging manner. b. The content must align with the following guidelines: [Content Guidelines].

3. Disclosure Requirements: a. The Influencer shall comply with FTC guidelines and disclose their affiliation with the Brand in each promotional post using #ad or #affiliate.

4. Intellectual Property Rights: a. The Brand grants the Influencer a non-exclusive, worldwide, royalty-free license to use the Brand's trademarks and logos for promotional purposes.

5. Exclusivity: a. The Influencer agrees not to promote or endorse any competitor of the Brand during the term of this Agreement.

6. Termination: a. Either party may terminate this Agreement with [Termination Notice Period] written notice. b. In the event of termination, the Influencer shall be entitled to receive the agreed-upon commission for sales generated before the termination date.

7. Governing Law: a. This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].

[Brand Name] [Influencer Name] By: ________________________ By: ________________________ [Authorized Representative] [Influencer Signature] Title: _________________________ Date: _______________________

Sample Influencer Marketing Agreement 3: Long-Term Partnership

This Influencer Marketing Agreement (the "Agreement") is made and entered into as of [Date] (the "Effective Date"), by and between [Brand Name], a [Jurisdiction] company (the "Brand"), and [Influencer Name], an individual residing at [Influencer Address] (the "Influencer").

1. Compensation and Deliverables: a. The Influencer agrees to collaborate with the Brand on an ongoing basis for [Duration] to create [Number of Posts] sponsored posts per month on [Social Media Platform(s)]. b. The Brand shall pay the Influencer [Monthly Compensation Amount] for the duration of this Agreement.

2. Content Guidelines: a. The Influencer shall create engaging and authentic content that showcases the Brand's products/services. b. The content must align with the following guidelines: [Content Guidelines].

3. Disclosure Requirements: a. The Influencer shall comply with FTC guidelines and disclose their ongoing partnership with the Brand in each sponsored post using #ad or #sponsored.

4. Intellectual Property Rights: a. The Brand shall own all intellectual property rights in the content created by the Influencer during the partnership. b. The Influencer grants the Brand a non-exclusive, worldwide, royalty-free license to use, reproduce, and distribute the content for promotional purposes.

5. Non-Compete Clause: a. The Influencer agrees not to promote or endorse any competitor of the Brand during the term of this Agreement.

6. Termination and Renewal

Disclosure Tips for Influencer Contracts 

Here are some big picture disclosure tips for your contracts.

Disclose in the First Line

Disclosures should be placed at the beginning of the post or caption to ensure immediate visibility.

Disclosures on All Platforms

FTC guidelines apply to all social media platforms, including Instagram, YouTube, TikTok, and blogs.

Consistent Disclosures

Influencers must disclose their partnership in each sponsored post, avoiding vague or inconsistent language.

Every Great Influencer Relationship Starts With a Great Influencer Contract

Influencer contracts play a crucial role in establishing successful partnerships that adhere to legal parameters and FTC guidelines.

By crafting comprehensive agreements that cover compensation terms, content guidelines, disclosure requirements, intellectual property rights, and termination provisions, brands can ensure a smooth and compliant collaboration with influencers.